Who are we?

www.adept.uk.com

Adept is a construction company.

The business was started in December 2013 by Terry Heston & Lee McHugh incorporated as a Limited Company on 20th December 2013. Terry Heston is the company director and a 50% share holder. Lee McHugh is also a Director and 50% share holder.

Terry is a time served plasterer with the Bluebell Finishers accreditation for Polish Plastering. He holds a City & Guilds qualification in brick laying, a diploma in construction and engineering and is a Wykamol approved damp proof course contractor. He has been in the construction industry for over 25 years the majority of that has seen him as a project/site manager for all types of building works having completed the CITB (construction industry training board) SMST (site management safety training).

Lee has been an Advanced Craft Plumber & Domestic gas engineer for over 25 years, he holds domestic and commercial gas qualifications plus various bpec renewable energy qualifications & Part P and 17th edition electrics.

Sharne has a background in Business Administration and Accounts.

Adept is currently based at share holder Lee McHugh’s home address in Wirral and all work is carried out on the site of each individual job.

Sharne Williams is an employee of the business and works as the Finance & Administration Manager, and the company currently employs labour only sub-contractors and bone-fide contractors.

Over the last 2 years Adept has been purposely steered towards the New Build sector of the construction industry. Locally this sector is not as competitive as the smaller build sector of extensions and refurbishments and has a larger profit margin. Over the last few years the directors have developed relationships with 2 local investors and have secured 6 separate contracts to build 12 new build houses from now until the end of 2019. These contracts will be funded by the investors. The investors who are on board are also keen to work on repeat projects going forward from 2019 and we are in talks with a 3rd investor who has heard about Adept and wishes to discuss potential future business.

Adept has mainly been funded organically and by directors personal investment however it has come to the stage where outside funding would significantly help support the next stage of growth.

Over the last 2 years Adept has managed to purchase its own 2 pieces of land. One has now 2, 2 x bed town houses built on it which are owned by Adept. The properties are currently on the market at £110k each which will generate a revenue of circa £220k when sold. The second piece of land has planning approved for a 2 story build for 2 x 1 bed apartments. The current value of this land with planning stands at circa £35/40k once built on it is estimated that each apartment sale price will be £70/80k each.

The company stands to make a significant jump in revenue and profit due to the scale of the new build contracts that have been secured with investors. These investors are keen to progress with us and offer repeat business going forward. 2 of them have started a land bank purchasing select land for future builds.

The directors of Adept have worked extremely hard and sacrificed a lot to mould the business model that is Adept today. They have seen the most profitable areas of the industry and taken all steps to progress the company that way to become a profitable business which has now been reflected in the year 4 filed accounts. All the hard work of relationship and reputation building has been done and the future for Adept and it's directors looks very promising in the respect of job satisfaction and financial reward. A future has been created for Adept with secured contracts so should Rebuilding Society agree to invest in this future then we would be keen to build a relationship for future lending to keep supporting our growth.

Details

Who are we?

www.adept.uk.com

Adept is a construction company.

The business was started in December 2013 by Terry Heston & Lee McHugh incorporated as a Limited Company on 20th December 2013. Terry Heston is the company director and a 50% share holder. Lee McHugh is also a Director and 50% share holder.

Terry is a time served plasterer with the Bluebell Finishers accreditation for Polish Plastering. He holds a City & Guilds qualification in brick laying, a diploma in construction and engineering and is a Wykamol approved damp proof course contractor. He has been in the construction industry for over 25 years the majority of that has seen him as a project/site manager for all types of building works having completed the CITB (construction industry training board) SMST (site management safety training).

Lee has been an Advanced Craft Plumber & Domestic gas engineer for over 25 years, he holds domestic and commercial gas qualifications plus various bpec renewable energy qualifications & Part P and 17th edition electrics.

Sharne has a background in Business Administration and Accounts.

Adept is currently based at share holder Lee McHugh’s home address in Wirral and all work is carried out on the site of each individual job.

Sharne Williams is an employee of the business and works as the Finance & Administration Manager, and the company currently employs labour only sub-contractors and bone-fide contractors.

Over the last 2 years Adept has been purposely steered towards the New Build sector of the construction industry. Locally this sector is not as competitive as the smaller build sector of extensions and refurbishments and has a larger profit margin. Over the last few years the directors have developed relationships with 2 local investors and have secured 6 separate contracts to build 12 new build houses from now until the end of 2019. These contracts will be funded by the investors. The investors who are on board are also keen to work on repeat projects going forward from 2019 and we are in talks with a 3rd investor who has heard about Adept and wishes to discuss potential future business.

Adept has mainly been funded organically and by directors personal investment however it has come to the stage where outside funding would significantly help support the next stage of growth.

Over the last 2 years Adept has managed to purchase its own 2 pieces of land. One has now 2, 2 x bed town houses built on it which are owned by Adept. The properties are currently on the market at £110k each which will generate a revenue of circa £220k when sold. The second piece of land has planning approved for a 2 story build for 2 x 1 bed apartments. The current value of this land with planning stands at circa £35/40k once built on it is estimated that each apartment sale price will be £70/80k each.

The company stands to make a significant jump in revenue and profit due to the scale of the new build contracts that have been secured with investors. These investors are keen to progress with us and offer repeat business going forward. 2 of them have started a land bank purchasing select land for future builds.

The directors of Adept have worked extremely hard and sacrificed a lot to mould the business model that is Adept today. They have seen the most profitable areas of the industry and taken all steps to progress the company that way to become a profitable business which has now been reflected in the year 4 filed accounts. All the hard work of relationship and reputation building has been done and the future for Adept and it's directors looks very promising in the respect of job satisfaction and financial reward. A future has been created for Adept with secured contracts so should Rebuilding Society agree to invest in this future then we would be keen to build a relationship for future lending to keep supporting our growth.

Adept is at a very exciting point in the development of the business. It has been steered towards the new build market as it is a profitable market.

We have been able to secure short term high interest funding for growth, so ideally we would like to consolidate some short term lending to reduce the payments and interest and use the remainder to support the company in its growth towards the imminent new build contracts and the sale of our £220k properties.

What is the loan for?

Adept is at a very exciting point in the development of the business. It has been steered towards the new build market as it is a profitable market.

We have been able to secure short term high interest funding for growth, so ideally we would like to consolidate some short term lending to reduce the payments and interest and use the remainder to support the company in its growth towards the imminent new build contracts and the sale of our £220k properties.

Why consider investing?

Short Term Plans - The company stands to make a significant jump in revenue and profit due to the scale of the 6 new build contracts that have been secured with investors. These investors are keen to progress with us and offer repeat business going forward. 2 of them have started a land bank purchasing select land for future building projects for Adept.

Adept has managed to create a reliable, efficient team of tradesmen in its quest to establish itself in the new build sector. With the potential growth we have ahead of us we will be able to safeguard the following existing jobs plus create more job opportunities within each trade as we grow.

Our current team stands at the following:

2 x Managing Directors

1 x Finance /Administrator

2 x Labourers

1 x Painter decorator/ground worker

1 x Fabricator/ground worker

2 x Team bricklayers

2 x Joiners

2 x Plumbers

3 x Electricians

1 x Team of plasterers

1 x Roofer

We also currently create a revenue of circa £40k per month for our building trade supplier plus use regular local professional services such as a regular architect, building control, quantity surveyor, estimators, tree surgeon, waste removal firm.

Long term plans - Now that Adept has managed to obtain it's goal of securing new build contracts only it has been discussed that once in a financial position to do so we will look at acquiring a shop front style shop/office on the local busy high street. From here we would be able to have a point of call for potential customers/investors who are looking to build their own homes and we could also market the new build properties that we have built and potential land that is for sale in the area.

We can then offer a full new build services for investors or customers who wish to design and build their own homes.

Security

This loan is to be secured by way of two Personal Guarantees and an All Assets Debenture over the company.

PGs will be provided by the two company directors, Mr L McHugh and Mr T Heston. The directors have a combined estimated personal net worth of £290,000 which is derived from their joint ownership of two properties, an investment property with an estimated value of £220,000, and a plot of land with an estimated value of £35,000. Neither property has any existing charges and each director owns a 50% share of each. In addition to this, Mr T Heston jointly owns his domestic residence with his partner, a property with an estimated value of £270,000 and £70,000 of equity.

The property owned jointly by the directors mentioned above with an estimated £220,000 value is currently being marketed and is scheduled to be sold in the near future. Lenders should be aware that without this property, the combined estimated net worth of the two directors is reduced to £70,000.

An All Asset Debenture will also be taken over the company. This will create a fixed and floating charge covering all assets of the business. The charge will be second in priority, behind an existing charge in favour of NatWest.

ReBS Disclosure

Lenders should be aware that one of the properties detailed in the security section above, owned jointly by the directors, is scheduled to be sold in the near future.

As the property is currently owned by the directors, it has been included in the combined estimated net worth calculation detailed above and on the listing overview, however if the property is successfully marketed and sold, our calculation of the estimated net worth of both directors (which includes only bricks and mortar assets owned by the guarantors) will be reduced to £70,000.

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